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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (1280)	8/31/2000 2:37:59 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4409

Well the drill cores are confiming both continuity and consistency of the ore... It is indeed unsusal.. so much that Mintec has declared proven and probable reserves of 100M ounces plus after only 45 holes or so drilled last year and a very low exploration budget of $2M or so as of last year.. Spacing is mostly at 50 meters and they see no reason for a lot more in-fill. There will certainly be more drilling in some area to complete feasibility... but it should not be a major program due to the nature of the deposit. It is like a compact block of similar ore... only the grades will vary. There is also some variance in the ratio of chlorargyrite to sulfides (mainly small quantities of argentite) in the ore... and this affect the recovery rate somewhat... However, last year economic model which showed an IRR of 40-50% was base on average recovery rates of 67%. We now know that it will be higher.. Some 75%+ in the high grade starter pit, and 69-70% on average. Again, the consultants, the company and the analysts don't think they need a bulk test. But maybe they will do one who knows... If they are not taken over, they will finance this to production using mostly bank loans... and maybe the lender will ask for more evidences..in which case that bulk test will be indicated... But, as I said, there is no indication that they will need one. The new numbers coming out in September will tell us more.